Homes move ‘within reach of first-time buyers in most areas’
Nationwide's latest report reveals that affordability has improved for first-time buyers in 70% of local authority areas.
First-time buyers have seen homes become more affordable in nearly three quarters of local authority areas, according to the latest Nationwide research.
Around 70% of council districts are reporting improved affordability in the past year, the building society’s analysis shows.
Most affordable
Inverclyde, Burnley and Hartlepool are among the most affordable areas, with Kensington and Chelsea, Oxford and Cambridge the least.
The North has the smallest gap between least and most affordable areas, while London has the largest.
A 10% deposit on a first-time buyer property is between £10,000 and £25,000 in more than half of local authorities, Nationwide says.
Greatest gap
Andrew Harvey, Senior Economist at Nationwide, says: “London continues to have the greatest gap between the most and least affordable areas within the region by a considerable margin.
“Meanwhile, the North has the smallest difference between highest and lowest house price to earnings ratios (HPERs) by local authority area,” he says.
“The level of deposit required varies considerably by, and also within, region, reflecting differences in average house prices.”
Industry reaction
Mary-Lou Press, President of NAEA Propertymark, says: “This latest data highlights a mixed picture for first-time buyers across the country. It is positive to see affordability improving in many areas, with around 70% of local authorities recording progress over the past year, which should help support market activity.
“However, significant regional disparities remain. While some parts of the country are becoming more accessible to buyers, high house prices in areas such as London and the South East continue to create substantial barriers, particularly when it comes to saving for a deposit,” she says.
“The finding that a 10% deposit falls between £10,000 and £25,000 in over half of local authorities is encouraging, but many aspiring homeowners will still find it challenging to save amid wider financial pressures.”
Squeezed
Tom Bill, Head of UK Residential Research at Knight Frank, says: “Affordability continues to shape the map of UK house price growth, with regional parts of the country having slowly narrowed the gap with London over the last decade.
“With buyers increasingly squeezed by prices in the capital, they have found more value in other parts of the country, which has been made easier by blue chip companies setting up regional operations.”
